Foxtel subscribers must dig deep again

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Foxtel subscribers will face another fee hike next month after
the company spent millions on its digital service, launched earlier
this year.

The cost of the basic package will rise by $12 to almost $600 a
year while the platinum package, the most popular product, will
cost more than $1170, a rise of $36.

Foxtel denied it was recovering costs after spending $600
million on its digital service, which was launched in March. The
increase, which starts on December 1, is the second since the
launch of the digital network.

Foxtel spokesman Mark Furness said the company was running at a
loss but wanted to reverse the trend.

"We want to become a profitable business and we will have price
increases from time to time as we grow the business," he said.

Despite this the company - jointly owned by Telstra, Kerry
Packer and Rupert Murdoch - said its subscriber base and
advertising were increasing. "The volume of commercial advertising
on subscription television has grown significantly in the last 12
months," said Anthony Fitzgerald, chief executive of Foxtel's sales
arm, MCN.

And the fee hikes could prove lucrative if the commercial
networks fail to lodge a bid to screen the Ashes series next year.
Fox Sport could potentially be the only television carrier of the
series.

Sport, especially cricket, sells subscriptions. Last month
Foxtel reported weekly figures were up as much as 55.3 per cent on
the same time last year. All this was thanks to the Australia-India
cricket tour.